The density of fuel filling stations influences consumers' utility of private car transport. Thus, to the extent that different modes of private transport require different fuels, there may exist a network externality in the consumption of private transport. We investigate this in a formal model...

How much a policy is expected to cost and who bears the brunt of that cost play a significant role in the debates that shape regulations. We do not have a good track record of predicting costs and their ultimate distribution, but systematic reviews of past assessments have identified some of the...

In this paper, we describe the approach to, and experience of, the deregulation and liberalisation of the Norwegian electricity sector from 1991. The Norwegian electricity market was subsequently integrated with the Swedish, Finnish and Danish markets to become the Nordic electricity market: the...

In 2002/2003, the Nordic hydro-dominated power market faced a short-term supply shock. In autumn, precipitation and inflow were unusually low. As a result, there were record high prices in the following winter. Questions were raised whether the deregulated market creates sufficient incentives to...

Energy generated from land-based wind power is expected to play a crucial role in the decarbonisation of the economy. With the looming biodiversity and nature crises, spatial allocation of wind power cannot, however, any longer be considered solely a trade-off against local disamenity costs....

On the one hand, wind power production is necessary for decarbonizing the electricity sector. On the other hand, we risk replacing one environmental problem with other environmental problems, that is, stopping climate change in exchange with increased loss of pristine land and biodiversity. The...

We present a model for an energy market that includes a green certificate for suppliers of energy from renewables and a purchaser commitment to buy these certificates. We show that price and volume effects in the energy market are ambigous under a wide range of alternative levels of the...

This article discusses how different climate policy instruments such as CO2 taxes and renewable energy subsidies affect the profitability of fossil fuel production, given that a fixed global climate target shall be achieved in the long term. Within an intertemporal framework, the model analyses...

Concentration of greenhouse gases in the atmosphere influences the climate, which then alters the amount of primary energy for countries or regions where hydropower and wind power constitute important parts of the energy supply. Besides, the demand effect of temperature increases may be large in...

This paper addresses the impact of endogenous technology through research and development (R&D) and learning by doing (LbD) on the timing of environmental policy. We develop two models, the first with technological change through R&D and the second with LbD. We study the interaction between...